This week saw a strong week of funding rounds for the FinTech sector, with the top deal seeing Galvanize garner a whopping $1bn in investment.
Up to $2.9bn was raised in the FinTech sector this week, representing a strong week for the market and a growing humming of the sector after a relatively quiet summer period.
Sector-wise, this last week saw a particularly strong week for FinTech firms, with eight FinTechs bringing in deals. Following just behind on five deals were WealthTech and InsurTech firms. RegTech companies brought in three deals, ESG and PayTech two, and the AI sector just the one.
Geographically, the US and the UK lead with the most deals this week, with the former recording 13 deals and the UK bringing in seven deals. German firms were involved in two funding rounds, while Israel, Brazil, Hong Kong, Canada, Egypt, Spain, Sweden, Ireland and France all brought in one deal each.
Here are this week’s deals.
Galvanize secures $1bn
Galvanize Climate Solutions, a firm zeroed in on climate-focused investments, recently unveiled the wrap-up of its Innovation + Expansion Fund.
This fund, pioneering in venture and growth equity, exceeded a staggering $1bn, establishing it among the premier climate venture funds ever rounded up.
This massive undertaking emerged from the collaborative effort of hedge fund magnate and ex-presidential aspirant Tom Steyer, alongside Hall Capital Partners’ originator, Katie Hall, merely a year ago.
Alternative lender ThinCats lands £700m
ThinCats has entered a warehouse facility with both Citi and Barclays Bank, which is supported by the British Business Bank’s ENABLE Guarantee programme.
The ENABLE Guarantee programme’s primary goal is to boost lending to smaller enterprises in the UK. This current facility granted to ThinCats permits lending of nearly £696m to mid-sized, smaller British businesses. While Citi and Barclays are co-funding the senior portion, ThinCats contributes its own capital for the junior funding segment.
Delving deeper into what ThinCats offers, the company serves mid-sized enterprises, meeting their needs for both organic growth financing and merger & acquisition activities.
Cato Networks clinches $238m investment
Cato Networks, the renowned cloud security platform provider, has announced a significant fundraising achievement this week.
The firm revealed it has successfully garnered a whopping $238m in investment, valuing the business at a remarkable sum of over $3bn.
LightSpeed Venture Partners spearheaded this investment round, gaining notable backing from Adams Street Partners, Softbank Vision Fund 2, Sixty Degree Capital, and Singtel Innov8. As part of this financial partnership, Ravi Mhatre, the founder and managing director of LightSpeed Venture Partners, will take up a seat on the Cato board.
Fleximize secures £136m boost from Goldman Sachs and Citi
Fleximize, a multi-award-winning business lender, has successfully bagged a hefty £136m in securitised funding.
This significant financial backing comes from none other than the renowned existing investor, Goldman Sachs Asset Management, and the new lending partner, Citi.
Despite the turbulent market dynamics that have compelled several alternative lenders to recede from SME lending, Fleximize has steadfastly surfaced as a dominant force in the sector. Their recent accolade as the Best Business Loan Provider at the Business Moneyfacts Awards is a testament to their industry prowess.
Premium homeowners insurance firm Openly secures $100m
Openly, a Boston, MA-based firm, is a premium homeowners insurance provider that recently bagged a significant financial milestone.
The company has successfully raised $100m in its Series D funding round. Leading the investment charge was Eden Global Partners. The round also witnessed participation from an array of both current and new investors such as Gradient Ventures, Clocktower Technology Ventures, Trinity Capital, and other notable names.
In light of this transaction, David Dwek, the chief executive officer of Eden Global Partner, will now be taking a seat on Openly’s Board of Directors.
Enfusion secures new $100m credit facility
Enfusion is a frontrunner in delivering cloud-native software-as-a-service (SaaS) solutions tailored for investment managers.
The company has successfully secured a new $100m revolving credit facility on September 15, 2023. Predominantly, the syndicate of Enfusion’s relationship banks, notably including Bank of America, N.A., are the lenders under this credit agreement.
With a distinctive edge in the market, Enfusion’s SaaS platform is revolutionary in dismantling conventional information barriers.
Writer lands $100m to bolster GenAI technology
Writer, an enterprise-focused AI platform, has recently landed $100m in a Series B investment round, as it looks to fund the development of its Generative AI (GenAI) technology.
The company’s latest tranche brings its total capital raised to $126m, and sees the firm’s valuation rise to somewhere between $500m and $750m.
The round was led by by ICONIQ Growth with participation from WndrCo, Balderton Capital and Insight Partners, Aspect Ventures and Writer customers Accenture and Vanguard, and is seen as a vital step on its growth journey.
Dragos fortifies its cybersecurity lead with a $74m boost
Dragos, recognised for its cybersecurity for industrial controls systems (ICS)/OT environments, has unveiled a $74m Series D extension.
Spearheading this funding round is the strategic operating and investing firm, WestCap.
This equity endorsement follows closely on the heels of Dragos’s formidable $200m Series D which unfurled in October 2021.
Nomad secures $61m
Brazilian neobank Nomad has secured $61m in its Series B funding round, to bring in the largest investment for a LatAm financial startup this year.
The firm’s value has now risen to 1.8 billion reais ($361.49m), as a result of the round which was led by Tiger Global Management, also featured the participation of Nomad’s current investors: Stripes, Monashees, Spark Capital, Propel, Globo Ventures and Abstract.
Nomad will use its new capital injection to expand its investment platform and launch new products, including credit cards.
Curve secures additional £58m
Financial super app Curve has secured an additional £58m extension of its Series C round, bringing its funding total to over £133m, in one of the largest rounds of 2023.
The funds are expected to enable the London-based FinTech to improve its app’s overall customer experience, expand its Flex offerings, and bring exciting new partnerships to the market.
The extension round saw participation from Britannia, IDC Ventures, Cercano Management (the venture arm of Microsoft co-founder and philanthropist Paul G. Allen’s estate), Cohen Circle, Outward VC as well many other existing shareholders.
AI security firm HiddenLayer secures $50m in Series A
HiddenLayer, a security provider for AI models and assets, has successfully raised a staggering $50m in a Series A funding round.
This investment milestone is particularly significant as it stands as the largest Series A funding amassed by any cybersecurity firm focusing on AI protection this year.
The round was impressively led by M12, Microsoft’s Venture Fund, and Moore Strategic Ventures. Other prominent names joining the investment rally include Booz Allen Ventures, IBM Ventures, Capital One Ventures, and Ten Eleven Ventures.
Cybersecurity firm Legit Security clinches $40m in Series B
Legit Security, a cutting-edge cybersecurity enterprise, has celebrated a milestone by securing a substantial investment of $40m.
The company managed to close a $40m venture capital investment round, with CRV at the helm. Notably, existing investors such as Cyberstarts, Bessemer Venture Partners, and TCV also made their mark by participating in the round.
Centred around its pioneering Application Security Posture Management (ASPM) platform, Legit Security facilitates secure application delivery spanning from code to cloud. This platform not only offers continuous risk mitigation throughout the application journey but also boasts an all-encompassing security control plane that pools vulnerabilities from multiple sources.
Hong Kong Insurtech Bowtie lands $34.9m
Hong Kong-based virtual insurer Bowtie has revealed that it has landed $34.9m, following the conclusion of a Series B2 funding round.
The round was led by Sun Life Hong Kong Limited, one of Bowtie’s primary investors. Additionally, the round saw participation from Mitsui & Co., Ltd., further solidifying the company’s financial standing.
The company is aiming to use the funds to expand its operations and technological capabilities, with a specific focus on addressing Hong Kong’s substantial $886bn protection gap.
ZayZoon secures $34.5m
ZayZoon, the financial empowerment platform for small and mid-sized businesses, has successfully secured a significant investment.
The company raised a total of $34.5m in its Series B funding. The investment round witnessed leadership from Framework Venture Partners. It also enjoyed co-investment from Export Development Canada (EDC), participation from ATB Financial, and contributions from existing shareholders.
A beacon for financial stability, ZayZoon’s primary offering is Earned Wage Access (EWA). EWA acts as a financial bridge for employees, particularly in a world where 63% of Americans are navigating the challenges of living from one paycheck to another.
Vivante Health scoops up $31m
Vivante Health, dubbed as the frontrunner in the world of digital digestive health, has successfully wrapped up a significant $31m Series B funding round.
The principal investor behind this substantial backing is Mercato Partners. Additionally, new financial support also poured in from Health Catalyst Capital. Esteemed previous investors, such as 7wireVentures, Intermountain Ventures, Distributed Ventures, Human Capital, and SemperVirens, have shown continued faith in the GIThrive platform’s capacity to upscale patient results and provide a substantial reduction in medical expenses.
Egyptian FinTech Valu closes sixth issuance at $29.8m
Egyptian FinTech Valu has announced that it has closed its sixth securitised bond issuance worth $29.8m.
The issuance as part of a short-term programme that has been renewed and is backed by a receivables portfolio assigned to EFG Hermes’ Financial Group for Securitisation, the issuance’s Special Purpose Vehicle (SPV).
Valu is looking to make finance more accessible and inclusive, and this successful securitisation marks another step on that mission.
European decarbonisation leader Plan A secures $27m
Plan A, a corporate carbon accounting, decarbonisation, and ESG reporting software provider, has successfully finalised a $27m funding round.
The round was spearheaded by Lightspeed Venture Partners and saw significant participation from Visa, which partnered exclusively with Plan A in December 2022. Additional notable investors included Deutsche Bank, Opera Tech Ventures (the venture capital branch of BNP Paribas), and renowned unicorn founders from firms such as Supercell, Aiven, Zalando, and Wolt.
Plan A’s technological prowess in climate data processing and business decarbonisation has been evident with its substantial customer base growth, having over 1,500 clients, and software revenue surges of more than 600% YoY from December 2021 to 2022.
HyperJar secures $24m in Series A funding round
HyperJar, a leading digital wallet company, has proudly unveiled the successful finalisation of a $24m Series A funding round. The investment round witnessed leadership from Susquehanna Private Equity Investments, LLLP, and received notable participation from the Healthcare of Ontario Pension Plan (HOOPP).
Having positioned ‘spending money’ as a significant, yet untapped global market potential, HyperJar stands out in its approach to financial technology. The firm’s award-winning consumer digital wallet enjoys a robust user base, boasting over 500,000 customers across the UK.
With its world-first tools, HyperJar’s wallet empowers users with intentional money management solutions, partitioning capabilities, exceptional monetary control, and access to unparalleled merchant rewards.
Mesh secures $22m in Series A funding
Mesh, the innovative financial operating system focused on digital asset transfers and account aggregation, has announced a successful $22m Series A funding round.
This recent accomplishment will support the firm’s mission of crafting an open, connected, and secure financial environment wherein users maintain complete control over their assets.
The Series A funding witnessed Money Forward, Inc. taking the lead, followed by an impressive roster of new investors like Galaxy and Samsung Next.
Alcion secures $21m in Series A
Alcion, a modern data management startup, has successfully garnered $21m in a Series A funding round, elevating the firm’s total fundraising to $29m.
This impressive financial milestone was spearheaded by Veeam, an industry luminary in the realms of data protection and ransomware recovery.
Specialising in a security-first AI-powered Backup-as-a-Service (BaaS) platform tailored for Microsoft 365, Alcion’s innovative offering is also eyeing protection for other quintessential SaaS services.
Spanish FinTech lender Payflow clinches €20m deal
Payflow, a Spanish FinTech lender based in Barcelona, recently celebrated a significant funding milestone.
The company has successfully secured a hefty €20m in debt funding, with BBVA Spark being the primary investor in this substantial growth capital, according to a report from Tech.eu.
Operating as a salary advance platform, Payflow offers a lifeline to employees in Europe and Latin America, granting them early access to their salaries. This financial cushion is particularly helpful during unexpected events or unforeseen expenses.
Vero Technologies bags $8.5m investment
Vero Technologies, a leading wholesale financing technology and loan servicing platform, has celebrated the completion of its $8.5m Series A funding round.
The significant investment was led by venture capital fund BankTech Ventures. Notably, Vero also attracted funding from Sopra Steria Ventures and other prominent FinTech investors including Arcadia Funds, Antler, AAF Management, and the Independent Community Bankers of America.
Vero Technologies provides a pivotal solution for manufactured goods dealers such as auto, powersports, and agricultural equipment dealers who require capital for inventory procurement.
Rencore’s cloud collaboration tool gains $8m
Rencore, a Munich-based software company, has recently secured an investment of $8m to bolster its efforts in streamlining cloud collaboration governance.
The funding round, which positions Rencore at the forefront of cloud governance solutions, was led by the respected German investor UVC Partners.
The company, already renowned for its award-winning software that ensures secure and efficient collaboration in the cloud, continues to gain momentum in a market that shows an insatiable appetite for such solutions.
Delos Insurance Solutions bags $7.3m
Delos Insurance Solutions has secured $7.3m in a seed extension round, in a significant move to address the issue of homeowners’ insurance availability in wildfire-prone areas.
The round was led by led by IA Capital Group and joined by notable investors such as Blue Bear Capital, Gallatin Point Capital, Avanta Ventures.
It positions Delos perfectly to expand its footprint in the California homeowners’ insurance market, as the organisation remains steadfast in its commitment to the market, despite many national insurance carriers choosing to scale back their exposure in the region due to wildfire concerns.
Emerging market FinTech DKK Partners raises £3m
DKK Partners, a Frontier Markets FinTech firm, has celebrated the successful culmination of their pre-seed funding round.
The funding round witnessed the company garnering a total of £3 million. This feat comes as a prelude to their anticipated Series B, slated to commence at the start of 2024.
This Frontier Markets FinTech enterprise, with a focus on emerging markets (EM) and foreign exchange (FX) liquidity, is on a mission. DKK Partners is dedicated to democratising access to the FX liquidity sector.
Enigio lands €3m from Lloyds Banking Group
Lloyds Banking Group has poured €3 million into technology firm Enigio, underscoring its commitment to advancing the digital documentation landscape within the trade sector.
This €3m investment is a part of a broader raise which garnered approximately €6m. Spearheaded by Lloyds Banking Group, established backers such as Stockhorn Capital and MOOR Holding also marked their support.
Delving into Enigio’s offerings, the company has masterminded trace:original, a unique solution designed to eradicate the dependence on manual transfer of paper documents in trade operations.
Discern Security unveils AI-backed security policy platform with $3m boost
Discern Security has announced its arrival with the launch of the world’s first AI-powered security policy management platform.
Having secured a $3m seed funding round, the firm is set to amplify the performance of cybersecurity tools utilised by businesses while simultaneously cultivating relationships with Fortune 500 enterprises and other cybersecurity companies.
In the wake of international entities pouring over $150bn into cybersecurity efforts the previous year, and as cyberattacks inflict trillions in annual damages, the imperative for advanced cybersecurity solutions has never been clearer.
Wamo clinches $1.5m seed extension
Wamo, a UK-based FinTech firm, is making strides in the financial technology industry.
The digital business account provider has successfully raised a $1.5m seed extension round, according to a report from Altfi. This latest funding round was spearheaded by Finberg, the corporate venture investment division of the renowned Turkish bank, Fibabank. Joining the investment was the existing investor, RePie Asset Management.
For those unfamiliar, Wamo stands out in the crowded fintech market as a provider of digital business accounts.
Kayna aims to reshape SMB insurance after landing €1m investment
Kayna, the embedded insurance infrastructure platform, has successfully secured a €1 million pre-seed funding round.
The recent funding was co-led by Delta Partners, based in Ireland, and pan-European firm MiddleGame Ventures. Notably, participation was seen from Aperture, a Swiss entity, and the InsurTech Fund, an affiliate of the renowned InsurTech NY based in the USA. This investment coincides with Kayna’s ambitious market expansion plans into the United Kingdom and United States.
The core competence of Kayna lies in its unique provision of technology and data orchestration. This bridges the divide between insurance carriers, brokers, and varied vertical software-as-a-service (SaaS) platforms.
Dave boosts credit capacity with Victory Park Capital
Dave, commonly referred to as Dave and recognised as a front-runner among the nation’s neobanks, recently made significant modifications to its pre-existing Delayed Draw Senior Secured Loan Facility.
The revisions to the Credit Facility were made in collaboration with Victory Park Capital Advisors, LLC (VPC) and were put into action as of September 13, 2023.
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